The Asian Development Bank (ADB), one of the biggest multilateral donors for Sri Lanka, has urged the country to make reconstruction and recovery the first priority but cautioned not to forget crucial reforms.
Whilst acknowledging that tsunami was a setback, ADB in its Outlook 2005 released last week said "reconstruction and recovery is the first priority but urgent economic reforms needed for long-term growth should not be forgotten," by Sri Lanka.
"High oil prices, growing fuel subsidies, and a drought in 2004 all impacted inflation, the budget deficit, and the balance of payments. The year ended in tragedy: more than 35,000 Sri Lankans perished in the tsunami on 26 December. Reconstruction and recovery is the first priority, but urgent economic reforms needed for long-term growth should not be forgotten," the ADB said in its introduction to the Chapter on Sri Lanka. Full Story..